Exporters seek relief amid COVID-19 outbreak, SBI working on packages

Kolkata, Apr 28 () Hit hard by the COVID-19pandemic, exporters have sought relief from the government andbanks to deal with the situation, a representive of a tradebody said on Tuesday.

Chairman of CII National Committee on Exports andImports, Sanjay Budhia, said exporters are looking forward toextension of interest subvention scheme that expired on March31, among other measures.

"CII and all industry associations are asking forrenewal of the scheme as interest rates in India are as highas 9 to 10 per cent," Budhia said.

Indian exporters should get cost of credit atinternational rates to compete with Chinese exports, he said.

Budhia said China has announced export rebate of up to13 per cent and also devalued its currency.

Another exporters' body, Engineering Exports PromotionCouncil (EEPC), has also made a case for term loan extension.

"Working capital is an issue and term loan extensionis what the exporters are looking for," Executive Director ofEEPC Suranjan Gupta said.

On rolling over of forward contracts, Budhia said dueto the lockdown, there are no shipments taking place.

"The exporters are seeking rollover of forwardcontracts and they should not be penalized for forward covertaken as non-shipment of goods is not leading to realisationof export proceeds," he said.

Leading public sector lender State Bank of India saidsome packages are being worked out for exporters, adding thatthese have to be within the guidelines of the RBI and otherregulations.

"We are already extending an emergency line of fund-based limit and non-fund based limit to the MSMEs," anofficial of the bank said.

He also said exporters will be granted extension oftime for export realisation and no interest charges will applyfor making deferred payments up to three months. DCRBT RBT